UK Government secures Co2 supply deal

CO2​ suppliers have agreed to pay CF Fertilisers a price for the CO2​ it produces that will enable it to continue operating while global gas prices remain high, drawing on support from industry. The deal runs until January 2022.

Business secretary Kwasi Kwarteng said: “Today’s agreement means that critical industries can have confidence in their supplies of CO2 over the coming months without further taxpayer support.

“The government acted quickly to provide CF Fertilisers with the support it needed to kick-start production and give us enough breathing space to agree a longer-term, more sustainable solution.”

Responding to the news, British Poultry Council chief executive Richard Griffiths said: “Our member businesses have worked tirelessly to mitigate the issues brought on by the recent CO2​ episode and the announcement of a deal provides some respite for sectors like our own.

Longer-term solutions

“We must now start thinking longer-term and look to solutions to build resilience into our supply chains. We are waiting for more information from Government on the deal and look forward to working with them upon hearing further detail.”

The relief that the Government was able to secure its deal with CF Industry was shared by the Food and Drink Federation’s chief executive Ian Wright.

 “This should ensure a consistent supply through the vital food and drink production period in the run up to Christmas,” ​said Wright.

While welcome news, Wright was quick to highlight the increased cost of buying CO2​ was yet another burden on the food and drink industry which was already facing enormous stresses.